After years of deliberations dating back to the 2008 financial crisis, the Financial Accounting Standards Board (FASB) issued the highly anticipated Current Expected Credit Loss accounting model (CECL) on June 16, 2016. This Accounting Standards Update (ASU) will require institutions to measure expected credit losses reflecting reasonable and supportable forecasts – in contrast to the incurred loss model based on historical loss data and current conditions.

While much has been written about CECL from a policy perspective, there is little instruction to help institutions prepare for the operational implications of the new standard.